TOTAL on TradingView.com<\/a><\/figcaption><\/figure>\nThe total market capitalization of the cryptocurrency market stands at $1.13 trillion, which is consistent with its trading level since the start of August.\u00a0<\/span><\/p>\nAdditionally, Bitcoin’s dominance level is at 50.25%, while its price is currently trading at $29,216, showing a slight decline of 0.1% over the last 24 hours.<\/span><\/p>\nFeatured image from iStock, chart from TradingView.com <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Coinbase\u2019s Head of Research, David Duong, has shared his insights on the recent market movements in traditional finance and crypto.\u00a0 He believes that current macro conditions suggest a temporary pause in the recent strong USD trend, which should support the crypto market.\u00a0 Related Reading: Is SUI Price Stability Under Threat Due To Transactional Boom And Bust? Key Crypto & Finance Movements Duong notes that the recent carry trades upset by the Bank of Japan\u2019s decision to raise the hard cap on its 10-year bond yield have created instability across different pockets of the FX market.\u00a0 Meanwhile, the surprise decision by Brazil\u2019s central bank to cut its benchmark SELIC rate by 50bps (compared to expectations of 25bps) has led to higher interest rates in some price currencies coming down. In the US, the yield curve steepened significantly following the rally in Treasury bonds only two weeks ago, as the US Treasury Department announced an increase in the size of its debt issuance plans.\u00a0 Although Fitch cut the US debt rating from AAA to AA+ due to concerns about the fiscal outlook, Duong believes this impact on bond yields was fairly limited. Duong emphasizes that the US dollar is more sensitive to front-end rates, and the 2y yield seems well anchored. This suggests a temporary pause in the recent strong USD trend, which should support the crypto market.\u00a0 However, he expresses concern that crypto performance may recouple with US equities in the short term, which may cap the upside on digital assets due to stretched valuations. Duong also discusses the recent exploit of four liquidity pools on Curve, which didn’t help risk appetite in the crypto space but didn’t sustainably accelerate the downtrend that\u2019s been ongoing since mid-July.\u00a0 He believes the actual systemic risk associated with the exploit is limited by mitigating factors that offset some attack vulnerabilities. He also thinks this is not evidence of DeFi\u2019s weakness but highlights the system\u2019s antifragile properties. Related Reading: Crypto Trading Volumes Fall To Lowest Level In 2023 Amid Bear Market Woes Regarding market catalysts, Duong mentions the court decision in the Grayscale case (to convert its trust to an ETF), distributions from the Mt Gox Rehabilitation Trust to creditors, and any movement on the various Bitcoin spot Exchange-Traded Fund (ETF) applications in the US.\u00a0 However, he notes that all those events are difficult to position for, so the market will have to wait for more information before pricing them in. Duong notes that flows on the desk have been balanced in the majors while altcoins have been net for sale. He also highlights Optimism\u2019s OP token, which has traded better than expected, up 15% over the last 7 days, primarily attributed to the news around Base, Coinbase’s L2 on Ethereum. That chain, built on the OP stack, will broadly open on August 9. The total market capitalization of the cryptocurrency market stands at $1.13 trillion, which is consistent with its trading level since the start of August.\u00a0 Additionally, Bitcoin’s dominance level is at 50.25%, while its price is currently trading at $29,216, showing a slight decline of 0.1% over the last 24 hours. Featured image from iStock, chart from TradingView.com<\/p>\n","protected":false},"author":589,"featured_media":545857,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,656,6664,1558,1946],"class_list":["post-545856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-bitcoin-news","tag-crypto","tag-cryptocurrency","tag-ethereum"],"acf":[],"yoast_head":"\n
Coinbase Research Expert Decodes Latest Crypto And Finance Market Trends<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n